> ## Documentation Index
> Fetch the complete documentation index at: https://cashflowy.ai/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Bank Reconciliation

> Reconcile your bank statements against your Cashflowy records to ensure everything matches.

Reconciliation is the process of comparing your bank statements against the transactions in Cashflowy to make sure nothing is missing or duplicated. It's a core bookkeeping practice that ensures your records are accurate.

## How it works

<Steps>
  <Step title="Go to Reconciliation">
    Navigate to the **Reconciliation** page (under Banking).
  </Step>

  <Step title="Select an account and period">
    Choose the bank account and statement period (year/month) you want to reconcile.
  </Step>

  <Step title="Review transactions">
    Compare the statement items against the transactions in Cashflowy. Mark each transaction as **reconciled** when it matches the statement.
  </Step>

  <Step title="Use AI Reconciliation (optional)">
    Click the **AI Reconcile** button to have Cashflowy automatically match statement items to transactions. The AI provides a confidence score for each match.
  </Step>

  <Step title="Resolve discrepancies">
    If anything doesn't match — a missing transaction, a wrong amount — investigate and fix it before marking the statement as fully reconciled.
  </Step>
</Steps>

## Reconciliation status

| Status          | Meaning                                  |
| --------------- | ---------------------------------------- |
| **Pending**     | Statement hasn't been reconciled yet     |
| **Reconciled**  | All items matched and verified           |
| **Discrepancy** | Some items don't match — needs attention |

## Pulling fresh statements

If you need the latest statement from your bank, use the **Pull Statement** button to manually refresh from Plaid.

<Info>
  **Best practice:** Reconcile monthly. It's much easier to catch and fix errors when you're looking at 30 days of transactions rather than a whole year.
</Info>